empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

22.10.201907:55 Forex Analysis & Reviews: GBP/USD: plan for the European session on October 22. Another postponement of the Brexit vote for today. The pound is ready to break above 1.3040

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

To open long positions on GBP/USD you need:

Boris Johnson's attempt last Saturday to hold a vote in the House of Commons over his deal failed. Yesterday's attempt was blocked. Everything has been postponed to today. Therefore, the volatility of the pound is unlikely to be high until any news in this direction appears. A break and consolidation above the resistance of 1.3037 will be possible only after the news that the deal has been approved. In this scenario, we can expect further strengthening of the pound to the highs of 1.3074, 1.3167 and 1.3227. Any negative background will put pressure on GBP/USD, so only the formation of a false breakout in the support area of 1.2946 will be a signal to buy the pound. In a different scenario, the pair will decline for this support, and long positions can be returned to the rebound from lows of 1.2842 and 1.2664.

To open short positions on GBP/USD you need:

Sellers need bad Brexit news, and the formation of a false breakout in the resistance area of 1.3037 will be the first signal to sell the pound. Without specifics on Brexit, I do not recommend opening short positions on the pound, because if the deal is approved, the pair can strengthen by another 300-400 points. The more important task of the bears today is to return and consolidate the pair below the support of 1.2946, which will push the pound to lows of 1.2842 and 1.2664, where I recommend profit taking. However, such a downward movement will be possible only if the opponents of the current Brexit in Parliament again do not allow Johnson to vote by his deal, and even worse - if the vote turns out to be a failure. In case the pound further grows above the resistance of 1.3037, you can look at short positions after testing the highs of 1.3167 and 1.3265.

Signals of indicators:

Moving averages

Trading is conducted above 30 and 50 moving averages, which indicates the maintenance of a bullish trend.

Bollinger bands

Volatility has greatly decreased, which does not provide signals for entering the market.

Exchange Rates 22.10.2019 analysis

Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: Fast EMA 12, Slow EMA 26, SMA 9
  • Bollinger Bands 20
Miroslaw Bawulski
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off